California’s mental health system restructuring: 5 things to know

Becker's Healthcare January 9, 2026
Ella Ruder

California Gov. Gavin Newsom highlighted major expansions to the state’s mental health infrastructure during his Jan. 8 State of the State address. Previously, mental health planning and funding were left to the counties with little oversight. But under new statewide programs, the state now directs resources and holds counties accountable for implementation.

Here are five key developments:

1. Mr. Newsom launched the Community Assistance, Recovery and Empowerment Court program, a new legal framework to connect people with untreated mental health and substance use disorders to court-ordered services. The administration estimated that between 7,000 and 12,000 residents would qualify for the court, yet just 2,421 petitions have been filed through July 2025, with 528 of those resulting in treatment, according toCalMatters.com.
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